Published on : Wednesday, January 29, 2014
The industry’s occupancy increased 1.8 percent to 57.5 percent; average daily rate rose 3.3 percent to US$110.19; and revenue per available room was up 5.1 percent to US$63.36.
“The fourth quarter results were basically in line with the rest of the year, with the highest occupancy growth and moderate ADR growth,” said Jan Freitag, senior VP of global development at STR. “Overall, both growth rates point to a potential slowdown in quarterly growth rates throughout 2014 and 2015.”
“Fourth quarter RevPAR growth of 5.1 percent was once again powered by ADR, but occupancy growth was the strongest of any quarter in 2013,” said Bobby Bowers, senior VP of operations at STR.
Among the Top 25 Markets, Denver, Colorado, rose 8.4 percent in occupancy to 64.5 percent, reporting the largest increase in that metric, followed by Tampa-St. Petersburg, Florida (+7.5 percent to 59.5 percent), and Nashville, Tennessee (+7.1 percent to 65.0 percent).
Philadelphia, Pennsylvania-New Jersey, posted the largest occupancy decrease, falling 4.9 percent to 61.8 percent.
New Orleans, Louisiana, increased 13.6 percent in ADR to US$152.35, reporting the largest increase in that metric. Chicago, Illinois, reported the largest ADR decrease, dropping 1.4 percent to US$130.54.
Three markets experienced RevPAR increases of more than 15 percent during the quarter: Nashville (+16.7 percent to US$69.73); New Orleans (+16.3 percent to US$102.22); and San Francisco/San Mateo, California (+15.6 percent to US$155.64).
Washington, D.C., posted the largest decrease in RevPAR, dropping 3.3 percent to US$84.09.